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Crypto Market Faces “Vicious Sell-Off” as Trump’s Inauguration Looms: Arthur Hayes Warns

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Former BitMEX CEO Arthur Hayes warns that the crypto market could experience a significant sell-off following Donald Trump‘s inauguration on January 20, 2025. Hayes, who now manages the Maelstrom family office, argues that the gap between high investor expectations and the reality of Trump’s political influence will lead to a sharp market correction. He anticipates a “harrowing dump” in cryptocurrency prices as the market adjusts to the reality of limited policy changes within Trump’s first year in office.

Arthur Hayes Warns Crypto Market Faces Sharp Correction

Arthur Hayes suggests crypto investors have become overly optimistic about Trump’s ability to implement major regulatory changes swiftly. He believes these expectations, driven by the former president’s pro-crypto stance, are unrealistic in the U.S. political landscape. Trump will face significant challenges in translating campaign promises into actual policy. Hayes predicts the market will realize that meaningful regulatory reforms may not materialize as quickly as hoped.

The former BitMEX CEO emphasizes that most legislators will begin campaigning for the 2026 midterm elections soon after Trump’s inauguration, limiting his window for major policy actions. Hayes points out that even experienced politicians would need years to address the complex crypto market issues, making any substantial changes unlikely in Trump’s first year. The market’s disappointment, he argues, will likely trigger a sharp correction, particularly in the cryptocurrency space.

Hayes Foresees a “Vicious Sell-Off” Around Inauguration Day

According to Arthur Hayes, the crypto market could undergo a “vicious sell-off” shortly after Trump takes office. He notes that Bitcoin’s recent price surge, which saw it climb from $68,000 to a record $108,135 following Trump’s election win, is unsustainable in light of the political realities. Hayes warns that the sell-off could extend beyond just crypto assets and spill over into other sectors linked to Trump’s anticipated policies.

Maelstrom, Hayes’ investment firm, has already adjusted its portfolio in anticipation of this market shift. The company plans to reduce its crypto holdings before the inauguration, anticipating a correction once investor optimism wanes. However, Hayes acknowledges that his strategy could backfire if the bull market persists beyond January 2025, and he is prepared to adjust his approach if necessary.

Binance Faces Legal Action for Failing to Protect Australian Consumers

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The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against Binance’s Australian arm for allegedly failing to protect consumers. The case centers on claims that Binance misclassified 505 retail investors as wholesale clients, which exposed them to high-risk and speculative crypto derivative products. ASIC argues that this misclassification led to significant consumer harm by denying investors their legal rights under Australian financial services laws.

ASIC Claims Binance Exposed Clients to Risky Products

From July 2022 to April 2023, Binance Australia Derivatives offered crypto derivative products to 505 investors. According to ASIC, around 83% of these investors were incorrectly classified as wholesale clients, depriving them of vital protections. Under Australian law, retail clients are entitled to product disclosure statements and access to a dispute resolution scheme, both of which Binance failed to provide.

ASIC asserts that the misclassification of retail clients as wholesale clients meant they were exposed to riskier products without the necessary consumer protections. These protections safeguard consumers from high-risk investments, ensuring they have adequate information and recourse in disputes. Many affected investors reportedly suffered substantial losses due to this oversight.

Binance’s Compliance Failures

In addition to the misclassification, ASIC has accused Binance of failing to meet various regulatory requirements. The exchange did not make a Target Market Determination required for financial products. This lack of determination means Binance could have assessed whether its products suited its target customers, leaving investors vulnerable to unsuitable investments.

Furthermore, ASIC claims that Binance failed to implement an adequate internal dispute resolution process. As a result, clients needed a structured way to resolve grievances or seek redress. The regulator also argues that Binance’s internal systems were insufficient to ensure financial services were provided fairly and in line with legal obligations.

In April 2023, ASIC revoked Binance’s Australian financial services license. This followed a broader review of the company’s operations, focusing on compliance with Australian financial regulations. ASIC has stated that its investigation is ongoing and examines the extent of the consumer harm caused by Binance’s actions.

Dubai’s Crypto Boom: Bitpanda Gains VARA Approval for MENA Launch

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Bitpanda has achieved a significant milestone by securing in-principle approval from the Virtual Assets Regulatory Authority (VARA) in the UAE. This marks the company’s first expansion outside Europe, setting the foundation for its operations under the name Bitpanda Broker MENA DMCC. Dubai’s position as a regional digital finance hub provides Bitpanda with a strategic entry into the growing MENA cryptocurrency market.

Bitpanda Partners with RAKBANK and CoinMENA

The UAE’s progressive regulatory environment has attracted Bitpanda to establish its operations in Dubai. The company has already set up an office at the DMCC Crypto Centre, facilitating its strategic push into the region. Bitpanda’s partnerships with RAKBANK and CoinMENA reflect its efforts to align with local financial institutions.

Bitpanda’s leadership believes that Dubai’s balance of innovation and investor protection aligns with its compliance-driven model. By leveraging VARA’s framework, Bitpanda plans to provide secure and reliable access to digital assets. This expansion also bridges Europe’s rigorous regulatory standards with the UAE’s dynamic and fast-growing crypto market.

Bitpanda Strengthens Compliance and Innovation Focus

Securing VARA’s in-principle approval highlights Bitpanda’s strong focus on compliance and innovation. The company now aims to obtain full operational approval by meeting regulatory requirements. This includes setting up a fully functional office, implementing compliant infrastructure, and building a regional management team.

Bitpanda’s leadership emphasizes that the approval underlines VARA’s clear guidelines and efficient processes. The move also enhances user trust and positions the company for long-term growth in the MENA region. With compliance as a cornerstone, Bitpanda continues to strengthen its presence in global markets.

Bitpanda’s global strategy includes offering advanced tools and forming key partnerships to serve ambitious traders. Its collaboration with Societe Generale Forge demonstrates its focus on integrating euro-backed stablecoins into the financial ecosystem. This aligns with the company’s goal of facilitating secure and regulated digital asset access worldwide.

Additionally, Bitpanda recently launched Bitpanda Fusion, a high-volume trading product for experienced traders. The tool aggregates liquidity from leading exchanges to meet growing market demand. Bitpanda aims to cater to the needs of traders in the UAE and the broader MENA region.

FTX Reveals $16B Payout Plan: Find Out If You’re Eligible for Early Repayment

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FTX has announced January 3, 2025, as the effective date for its $16 billion repayment plan to creditors. The Chapter 11 reorganization plan, approved by a Delaware bankruptcy court, will take effect on this date. Eligible creditors, particularly those in the Convenience Classes, will be the first to receive their repayments.

The repayment process will begin 60 days after January 3. FTX has partnered with Kraken and BitGo to oversee fund distributions to eligible users. To receive funds, creditors must complete KYC verification and submit tax forms through the FTX Claims platform.

In preparation, users must be onboard with Kraken or BitGo before January 3. Creditors with claims under $50,000, representing 90% of all claims, will be prioritized. After the initial round, FTX will release separate payment schedules for other creditor classes.

The reorganization plan ensures most creditors receive the USD equivalent of their holdings based on a 118% claim price. These calculations reflect the exchange rates from FTX’s bankruptcy filing in November 2022. FTX will allocate up to $16 billion to fulfill repayments and restore customer trust.

FTX Creditors’ Payouts May Drive Market Liquidity

The announcement sparked mixed reactions within the crypto community. Some investors fear FTX will sell substantial crypto holdings to generate cash for the repayments. They argue this could trigger a significant drop in cryptocurrency prices.

Others suggest that repayments positively impact the market. Many expect creditors to reinvest funds, especially those distributed in stablecoins like USDT, back into crypto assets. This could drive fresh liquidity into the market, balancing potential sell-offs.

Market analysts remain divided over the broader economic implications of FTX’s repayments. Some caution that sudden liquidity could lead to market volatility. However, others maintain optimism, believing the distribution will stabilize investor sentiment over time.

Court-Approved Plan Advances FTX Repayment Process

The initial repayments prioritize Convenience Class creditors with claims below $50,000. FTX estimates that this group accounts for nearly 90% of eligible claims. By targeting this group, the company aims to resolve smaller claims efficiently and quickly.

The system groups creditors into classes to streamline repayments. Users with higher claims will receive their funds through subsequent payment dates. FTX plans to announce the timeline for larger claims after the initial distribution phase.
The court-approved plan marks a major milestone in FTX’s bankruptcy process. FTX’s legal team remains committed to smoothly executing the repayments. The $16 billion repayment highlights efforts to compensate affected creditors while recovering from the exchange’s collapse.

Ripple’s RLUSD to Debut on Dec. 17 Experts Warn of Early Volatility Risks

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Ripple (XRP) will launch its USD-denominated stablecoin, RLUSD, on global exchanges tomorrow, December 17, 2024. The stablecoin will integrate with both the XRP Ledger and Ethereum blockchains. Ripple aims to deliver enterprise-focused solutions, leveraging its experience in cryptocurrency and traditional financial systems.

RLUSD will initially be available on platforms such as Uphold, Bitso, MoonPay, Archax, and CoinMENA. In the coming weeks, Ripple plans to expand availability to exchanges like Bullish, Bitstamp, and Mercado Bitcoin. This phased approach is expected to ensure smooth market adoption.

The stablecoin’s reserves will consist of US dollar deposits, government bonds, and cash equivalents. Ripple will publish monthly third-party attestations to maintain transparency and build trust. These measures aim to guarantee stability and ensure RLUSD’s backing remains secure.

RLUSD Supports Payments and Collateralization

Ripple plans to use RLUSD for global payments, cross-border settlements, and liquidity access. The stablecoin will also support treasury operations and remittance flows for enterprise clients. Ripple Payments will integrate RLUSD into its operations starting early next year to enhance its $70 billion annual payment volume.

The token will play a significant role in decentralized finance (DeFi), bridging traditional and digital asset systems. Additionally, RLUSD will facilitate collateralization for tokenized real-world assets, such as securities and commodities. This integration positions Ripple to capitalize on the growing demand for asset-backed tokens.

Ripple Addresses Regulatory Standards

Ripple launched RLUSD under the NYDFS limited purpose trust company charter, which is recognized for its rigorous regulatory standards. The approval reflects the stablecoin’s compliance with US financial regulations. Ripple expects clearer US regulatory frameworks to encourage greater adoption of stablecoins like RLUSD.

Brad Garlinghouse, Ripple’s CEO, emphasized that trust and expertise will drive RLUSD’s success in the market. He added that stablecoins backed by strong reserves provide real utility for global financial operations. The company remains confident in RLUSD’s ability to deliver reliability and efficiency to enterprises.

Ripple Targets Global Payments with RLUSD Launch

Ripple acknowledged that RLUSD may face volatility during its initial launch phase. High demand and speculative activity have led to reports of pre-launch supply shortages. David Schwartz, Ripple’s CTO, cautioned against market FOMO and urged patience as supply stabilizes.

Ripple anticipates that the volatility will subside once the market achieves supply-demand equilibrium. The company reassured users that RLUSD’s stability is reinforced by its secure reserves. Ripple’s measured approach aims to minimize disruptions and foster long-term confidence in the stablecoin.

With RLUSD’s launch, Ripple continues to bridge fiat and cryptocurrency systems, supporting enterprise payments and DeFi innovation. The stablecoin’s dual integration with XRP Ledger and Ethereum enhances its accessibility and utility for global markets.

Ethereum ETFs Boom: BlackRock and Fidelity Dominate $855M Inflows Week

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Ethereum spot exchange-traded funds (ETFs) recorded their highest-ever weekly inflows, totaling $855 million from December 9–13, 2024. This marks a significant milestone for Ethereum, reflecting heightened institutional interest and confidence in the cryptocurrency market. Leading the charge, BlackRock’s ETH ETF (ETHA) attracted $523 million in net inflows during the week.

Fidelity’s FETH ETF followed closely, securing $259 million in investor funds over the same period. Grayscale’s ETHE also gained notable traction, drawing substantial interest amidst the wave of inflows. These ETFs solidified Ethereum’s position as a top choice among institutional investors.

Rising Demand Pushes Ethereum Price Toward $5,000

Ethereum’s strong performance in the ETF market comes amid bullish price activity. The cryptocurrency traded at $3,965 on Monday, a 1.8% increase in 24 hours fueled by rising demand and network activity. Analysts predict that Ethereum could surpass $5,000, driven by robust supply-demand dynamics.

A CryptoQuant report supports this optimism, highlighting Ethereum’s realized price at $5,200, an upper valuation target. Strong investor sentiment, coupled with growing interest in ETH-backed ETFs, reinforces the likelihood of a rally. Ethereum remains the second-largest cryptocurrency by market capitalization, a key factor attracting institutional investments.

Grayscale Achieves $5.37B in Ethereum Assets

Grayscale’s ETHE ETF achieved a major milestone, ranking fourth in the Top 25 ETFs by asset size. The fund, managed by Grayscale Advisors, now holds $5.37 billion in assets under management. This achievement underscores the rapid growth of cryptocurrency ETFs since the SEC approved Bitcoin ETFs in January 2024.

The SEC’s decision to greenlight Ethereum ETFs in July 2024 further boosted the adoption of crypto-backed financial products. This regulatory support has spurred institutional participation, driving significant inflows into funds like BlackRock’s ETHA and Fidelity’s FETH. As a result, Ethereum ETFs continue to gain momentum, reshaping the investment landscape.

Ethereum’s performance in both price and institutional adoption signals its growing prominence in the financial ecosystem. The record-breaking inflows into spot ETFs highlight the cryptocurrency’s appeal as a long-term investment. With sustained growth in demand and network activity, Ethereum remains well-positioned for further gains.

Justin Sun Plans 53K ETH Move Sparking Market Buzz Amid $4K Ethereum Rally

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Justin Sun, the founder of Tron, has announced plans to acquire 52,905 ETH worth approximately $209 million. This move comes shortly after a significant Ethereum selloff by Sun, raising questions about his strategy. Ethereum prices have shown resilience, hovering near $4,000 despite market uncertainty surrounding Sun’s activities.

Tron Founder Justin Sun Plans To Bag 53K ETH

As reported by the on-chain analytics platform Spot On Chain, Justin Sun has applied to withdraw 52,905 ETH from Lido. This withdrawal aligns with his previous accumulation of 392,474 ETH, purchased for around $1.19 billion through three wallets. Sun holds an estimated profit of $349 million from his Ethereum investments, with a 29% return on investment.

Recently, Sun sold 29,920 ETH, valued at $119.7 million, to the HTX exchange following Ethereum’s price spike to $4,000. This selloff and his latest accumulation plan have sparked concerns about its impact on Ethereum’s market dynamics. Given the potential influence on the asset’s price, investors are closely monitoring his next moves.

Ethereum’s price increased by over 1% in the last 24 hours, reaching $3,937.41 with a high of $4,020. The cryptocurrency’s one-day trading volume surged 11%, hitting $30.5 billion, reflecting strong market activity. ETH has gained 27% over the past month, showcasing growing investor confidence.

Data from CoinGlass revealed a 5% increase in ETH Futures Open Interest, indicating bullish market sentiment. However, market experts are cautious about whether Sun’s planned acquisition will trigger further volatility. Despite these concerns, Ethereum whales have been actively buying as prices surpassed $3,300.

Market Experts Speculate on Justin Sun’s Intentions

Sun’s recent moves have fueled debates about whether he will continue selling ETH or hold his current assets. Some analysts suggest his actions could dampen Ethereum’s price momentum if significant selloffs follow. Others believe his accumulation signals long-term confidence in Ethereum’s potential growth.

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Source: Ali Martinez, X

Meanwhile, experts remain optimistic about Ethereum’s broader market trends. Analysts predict the asset may target the $15,000 mark in the future, boosting investor sentiment. As Ethereum’s price climbs, market participants will closely watch for Sun’s next steps and their implications.

Bitcoin (BTC) Set to Surge in 2025: Donald Trump’s Crypto Overhaul Could Ignite Boom

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CoinShares has released its predictions for the cryptocurrency market in 2025, highlighting key trends that could shape the industry. The investment firm expects significant changes in U.S. crypto regulation under the Donald Trump administration. Analysts foresee a shift in focus towards Bitcoin (BTC), with altcoins poised to outperform in the near term. Additionally, the emergence of Bitcoin-yielding companies and the continued rise of Ethereum’s Layer 2 solutions are expected to dominate the crypto landscape.

Donald Trump Administration to Influence Crypto Regulation

CoinShares analysts predict that the U.S. will experience a major overhaul in crypto regulation under the Trump administration in 2025. The firm expects that regulatory clarity and support for Bitcoin miners will create a more favorable environment for digital assets. These changes could lead to stronger growth for BTC, as the U.S. adapts to policies that are more welcoming to the crypto industry.

However, CoinShares’ Max Shannon notes that despite BTC’s continued strength, altcoins are likely to outperform in the coming year. The firm believes that miners who focus solely on Bitcoin will see better returns compared to those diversifying into other revenue streams. This trend points to the possibility of altcoins gaining more traction, as investors diversify their portfolios beyond Bitcoin.

Bitcoin Yield Strategies Gain Momentum in 2025

CoinShares has also highlighted the rise of Bitcoin-yielding companies as a key trend to watch in 2025. Several businesses are now adopting Bitcoin as a treasury asset, seeking to generate yields from their holdings. CoinShares’ Satish Patel identifies three major strategies for BTC yield generation: growing Bitcoin holdings relative to company shares, engaging in yield farming, and leveraging derivatives for income generation.

Companies like MicroStrategy, which holds over 420,000 BTC, are setting the stage for others to follow suit. These companies are adopting Bitcoin as a financial strategy, positioning themselves to benefit from both Bitcoin’s value appreciation and its potential to generate returns. This trend is expected to gain momentum as more companies, including names like Block, Marathon Digital, and Metaplanet, accumulate BTC and experiment with yield-generation strategies.

As more businesses start accepting crypto payments, including major players like Amazon, Shopify, and Nike, BTC is increasingly seen as both a store of value and a tool for generating passive income. Patel believes that this trend will continue to expand, with more companies potentially incorporating Bitcoin into their treasuries in 2025.

Ethereum’s Layer 2 Adoption Set for Growth

The prediction also points to Ethereum’s continued growth, particularly in its Layer 2 solutions. Ethereum’s Layer 2 scaling technology, which helps increase transaction speed and reduce fees, is expected to drive further adoption in 2025. Analyst Luke Nolan believes that the institutionalization of Layer 2 chains, demonstrated by companies like Kraken and Sony, will push demand for Ethereum services to new heights.

Nolan adds that Layer 2 adoption will increase the demand for Ethereum’s underlying infrastructure, leading to higher transaction fees and greater network usage. Furthermore, with the upcoming Pectra upgrade, Ethereum is expected to achieve new efficiencies in 2025. However, the network will still face challenges in balancing usability with value accrual as the ecosystem evolves.

Ethereum ETFs See $500M Inflows as BlackRock and Fidelity Lead Purchases

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BlackRock and Fidelity have significantly increased their Ethereum (ETH) holdings in the past few days, reflecting a surge in demand for ETH exchange-traded funds (ETFs). According to on-chain data, over $500 million in ETH has flowed into these funds recently. This marks a notable acceleration in inflows, surpassing the slower buildup observed in previous months.

Ethereum ETFs See $1.29 Billion Inflows

Ethereum ETFs have seen almost uninterrupted net inflows since November 21, with only a few neutral days. However, the past week has witnessed record-breaking activity, bringing in a total of $1.29 billion. This surge follows the positive market reaction after the U.S. elections, which boosted both cryptocurrency and traditional asset markets.

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Source: CoinAnk

BlackRock and Fidelity are leading the way in Ethereum purchases, with BlackRock’s known wallets now holding over 820,000 ETH. The firm has ramped up its ETH buying, similar to the early hype surrounding the ETF launch earlier this year. Fidelity, on the other hand, has expanded its holdings to more than 114,000 ETH, seeing a substantial increase in inflows after months of relatively slow growth. Both companies have capitalized on the renewed interest in Ethereum as the price hovers just below the $4,000 mark.

BlackRock and Fidelity Drive Ethereum ETF Growth

The growing interest in Ethereum ETFs coincides with the bullish sentiment in the broader crypto market. The total assets managed by BlackRock’s Ethereum ETF have surged to $3.55 billion, while Fidelity’s ETF has grown to $1.56 billion. Grayscale, despite recent restructuring, still holds the largest amount of ETH, with its Ethereum Trust managing $5.56 billion in assets. Grayscale has reduced its selling activity, contributing to the more optimistic outlook for ETH.

Market observers suggest that Ethereum’s relatively low inflation rate is another factor driving interest in its ETFs. ETH’s annual inflation rate has dropped significantly from a peak of 0.6% to just 0.12%. This reduction has helped position ETH as a more scarce asset, with only 3,569 ETH being minted each week, down from over 17,000 earlier this year.

Despite these positive developments, the Ethereum network itself remains somewhat controversial. Technical issues persist, and many industry insiders remain cautious about the network’s future. Ethereum continues to serve as the backbone for the Layer 2 ecosystem, but its base layer is not producing significant new inflows, as most of the activity now occurs on Layer 2 platforms and decentralized applications.

Bitwise Predicts Crypto’s Golden Era: Bitcoin to Surpass $200K

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Bitwise has set an optimistic tone for the future of cryptocurrency, predicting that 2025 will usher in the “golden era” for digital assets. With 2024 marked by unprecedented gains and institutional interest, Bitwise sees a strong momentum carrying forward into the next year. The firm’s predictions suggest a transformative phase for the crypto market, driven by innovations and an expanding regulatory framework.

BTC, ETH, and Solana to Reach New All-Time Highs

Bitwise forecasts that Bitcoin, Ethereum, and Solana will all achieve new all-time highs in 2025. Bitcoin is expected to trade above $200,000, with Ethereum reaching $7,000 and Solana hitting $750. The company predicts that the success of Bitcoin ETFs in 2024 will drive even more institutional capital into these top crypto assets in the coming year. As global demand for cryptocurrencies rises, Bitcoin’s market dominance is likely to increase, further pushing its price upward. Ethereum and Solana are also seen benefiting from growing developer ecosystems and expanding use cases.

Another key prediction from Bitwise is the surge of Initial Public Offerings (IPOs) from major crypto companies. The firm expects at least five prominent crypto unicorns to go public in the United States. Companies such as Circle, Figure, Kraken, Anchorage Digital, and Chainalysis are seen as strong contenders for listing in 2025. This IPO wave would mark a major milestone for the crypto industry, signalling its growing maturity and the increasing appeal of blockchain technology to traditional investors. The transition of crypto companies into publicly traded entities is poised to strengthen the sector’s credibility and financial infrastructure.

Bitcoin to Surpass Gold and Broader Crypto Growth

Bitwise also predicts that Bitcoin could surpass the $18 trillion gold market in the coming years, with Bitcoin potentially reaching $1 million per coin by 2029. This ambitious forecast reflects growing investor confidence in Bitcoin’s role as a store of value, potentially even replacing gold in certain portfolios. Additionally, the U.S. Department of Labor is expected to ease restrictions on crypto in 401(k) plans, further integrating digital assets into mainstream financial markets. With the anticipated passage of stablecoin regulations, Bitwise foresees the stablecoin market doubling to over $400 billion in 2025, with institutional adoption becoming a key growth driver.


As Wall Street and governments become more involved, Bitwise predicts the tokenized Real World Assets (RWA) market will also expand, reaching $50 billion by the end of 2025. This influx of traditional assets into the crypto ecosystem will create new investment opportunities and accelerate the mainstream adoption of blockchain technology.